The recent domestic air travel disruption highlighted the strategic need for South Africa to establish a diverse and sustainable local source of aviation fuels.
Fuel shortage
After the January fire caused a major fuel shortage, one devastating event has led to the transportation sector to supply imports from various suppliers, despite the recent reopening of the Natref refinery.
This disruption shows why the government should support the development of sustainable aviation fuels (SAFs) in the country. Sustainable aviation fuels could not only prepare for risks like recent shortages, but could also make South Africa a regional hub for international airlines seeking to lower their carbon footprint.
The lack of domestic jet fuel supply and reliance on import sources will be exacerbated as the country aims to open another major airport in Cape Wineland. Unless the Ministry of Mineral Resources and the Energy mixes aviation and fuel alternatives, the airport's expansion plans are at risk before they can escape the first gate.
Biofuels are a promising alternative, and together with many other benefits, such as the diverse sugar industry, job creation, and transformation, can compensate for current fuel shortages with mixed fuels.
SAFS has high hopes for South Africa. The global aviation industry's goal is net zero carbon emissions by 2050, and SAFs currently used in commercial aviation can reduce such emissions by up to 80%. However, to achieve these important goals, there must be a significant increase in SAF production to meet this demand. Sugarcane-based ethanol acts as a renewable fuel source and can compete with finite sources such as fossil kerosene.
Furthermore, biofuel processing plants require skilled, semi-skilled labor, creating jobs not only in agriculture, but also in manufacturing, logistics and research and development.
The global push for SAFS has gained momentum and presents an important opportunity for South Africa to establish itself as a key player in this emerging market. However, active policy support is required to take advantage of this opportunity. The government should implement clear incentives for SAF development, such as grants, research grants, and public-private partnerships.
Regulatory alignment with global SAF mandates, such as those established by the International Civil Aviation Organization (ICAO) and the European Union, is also important in ensuring that South Africa-produced SAFs meet international standards and attract investment.
Migrating to SAFS is not a matter of cases, it's a matter of when. Countries moving quickly to develop domestic production capacity will enjoy the economic and environmental rewards of the greener aviation industry. Interest among South African sugar cane growers has grown to use sugar cane as a fuel ingredient. South Africa has the resources, expertise and an industrial base to become a leader in this field.
Currently, lessons can be learned from India, another major sugar producer, who is a global SAF leader and is adopting initiatives to leverage this new market while continuing to use new revenue streams amid the decline of traditional markets.
Sugarcane Catalyst
Diversifying the sugar industry by opening new markets for sugar cane creates direct and indirect jobs, provides security for unstable markets against external shocks and climate change, and delivers the goals of long-term transformation by adding precious products to South Africa's domestic and international markets.
South Africa's unemployment rate reaches 31.9%, and it cannot become a business as usual. A consistently high unemployment rate should encourage industries to think of alternative markets for job creation.
The Department of Agriculture has reaffirmed its commitment to small-scale producers by focusing on the R1 billion transformation intervention fund as a funding tool for empowerment. However, protecting small producers in truly transformed sectors can only be achieved through strong policy directions and strategic investment initiatives, such as creating new markets for sugar and sugarcane. By creating a policy environment that allows for new end-users investments for sugar or sugar cane, we can help sugar cane growers with their own sustainability. Sa Canegrowers represents 24,000 small and 1,200 large producers. Our growers are subject to immense pressure through a variety of external threats, including changing, unstable climates and employment policies like the sugar tax.
Small growers are particularly vulnerable to these pressures, and without long-term intervention in solutions to make the industry sustainable, these growers could end up going out of business.
Small-scale growers provide a lot of needed stability and employment in rural KZN and Mpumalanga, in areas with few other options.
It is important to create and protect employment and rural communities by keeping the sugar industry profitable and sustainable. Within the number of important economic, social and climate-related challenges, the sugarcane industry must work with governments to diversify its value chains and keep up with global trends.
